Central Bank Expects Headline Inflation To Average 2.5-3.5 Pct This Year

**Admin** Wed Apr 06, 2011 4:09 am

KUALA LUMPUR, March 23 (Bernama) -- Headline inflation is
expected to average between 2.5 and 3.5 per cent this year and will
continue to be driven by supply factors, especially, higher global
commodity prices, according to Bank Negara Malaysia 2010 Annual Report.

Global commodity prices is expected to rise on account of disruptions
in supply due to adverse weather conditions, geopolitical developments,
speculative activities and the strong demand from emerging economies.

Domestically,
as part of the government's subsidy rationalisation programme, a series
of adjustments to the prices of administered items is expected for
2011.

"However, the price adjustments are expected to be gradual and this will help contain overall impact on inflation," it added.